Tax credit renewal is good news for biodiesel, wind industries
Key tax credits for the biodiesel and wind industries have been renewed as part of the fiscal cliff legislation.
A credit of $1 per gallon for the biodiesel industry had expired at the end of 2011, hurting U.S. production of the soybean based fuel.
The congressional action is a welcome development, said Ed Hegland, a West Central Minnesota farmer on the National Biodiesel Board.
"That's wonderful news for the biodiesel industry," Hegland said.
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Minnesota has three biodiesel production plants. The state also mandates that all diesel fuel sold in the state contains at least 5 percent of the renewable blend.
Congress also reinstated the production tax credit for the wind energy industry. The credit will go to any wind farm that begins construction in 2013.
The renewal is good news for the nation's economy, said Peter Kelley with the American Wind Energy Association.
"We're delighted, this is going to re-start the wind energy industry in this country," Kelley said. "It enables 75,000 workers to know that they still have a career in wind. Start the private investment going again. Let's bring people back to work at the factories; let's start building wind farms again."